Net present value Using a cost of capital of 16%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable,Data tableThe net present value (NPV) of the project is $(Round to the nearest cent.)(Click on the icon here in order to copy the contents of the data table belowinto a spreadsheet.)Is the project acceptable? (Select the best answer below.)NoInitial investment (CF)-1,141,000|O YesYear (t)Cash inflows (CF,)$79,000$136,00012$194,000$258,00034$314,000$377,000$274,0006.78$104,000$46,0009.10$24,000

Cost of Capital is 16% To Find:- NPV

Net present value Using a cost of capital of 16%, calculate the net present value for the project shown in the tollowing table and muicalu WI0 Data table The net present value (NPV) of the project is $ (Round to the nearest cent.) (Click on the icon here p in order to copy the contents of the data table below into a spreadsheet.) Is the project acceptable? (Select the best answer below.) O No Initial investment (CFo) - 1,141,000 O Yes Year (t) Cash inflows (CF,) $79,000 $136,000 1 2 3 $194,000 4 $258,000 $314,000 $377,000 $274,000 $104,000 $46,000 6. 8. 9. 10 $24.000

Net present value Using a cost of capital of 16%, calculate the net present value for the project shown in the tollowing table and muicalu WI0 Data table The net present value (NPV) of the project is $ (Round to the nearest cent.) (Click on the icon here p in order to copy the contents of the data table below into a spreadsheet.) Is the project acceptable? (Select the best answer below.) O No Initial investment (CFo) - 1,141,000 O Yes Year (t) Cash inflows (CF,) $79,000 $136,000 1 2 3 $194,000 4 $258,000 $314,000 $377,000 $274,000 $104,000 $46,000 6. 8. 9. 10 $24.000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3PB: Net present value method, present value index, and analysis for a service company First United Bank...

See similar textbooks

Similar questions

Net present value Using a cost of capital of 14%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent.) Is the project acceptable? (Select the best answer below.) Data Table Yes No (Click on the icon here D in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CF,) 1,140,000 Year (t) Cash inflows (CF,) $75,000 $138,000 $190,000 $250,000 $319,000 $380,000 $280,000 $102,000 $46,000 $25,000 1 2 4 7 9 10 Click to select vour answer(s)
Net present value Using a cost of capital of 15%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $. (Round to the nearest cent.) Is the project acceptable? (Select the best answer below.) O Yes No Data table (Click on the icon here in order to copy the contents of the data table below a spreadsheet.) Initial investment (CF) Year (0) 1 2 3 4 5 6 7 8 9 10 -1,156,000 Cash inflows (CF) $75,000 $140,000 $192,000 $254,000 $313,000 $378,000 $271,000 $97,000 $49,000 $26,000
K Internal rate of return and modified internal rate of return For the project shown in the following table,, calculate the internal rate of return (IRR) and modified internal rate of return (MIRR). If the cost of capital is 13.04%, indicate whether the project is acceptable according to IRR and MIRR. The project's IRR is %. (Round to two decimal places.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CFO) Year (t) $80,000 Cash inflows (CF₂) 1 $10,000 2345 $25,000 $10,000 $15,000 $45,000 Print Done -
Please see attached:
You are analyzing a project and have prepared the following data: a. Based on the net present value of this project, should you reject or accept this project? (Please provide the formulas for calculation or the keys applied if a financial calculator is used) b. What is the internal rate of return (IRR) of this project? Should you reject or accept this project? (Please use a financial calculator and list the keys you use)
Can you answer these in Excel (and show any calculation formulas). See the attached image for the information. 1. What is the payack period, NPV, IRR? 2. What happens to the NPV and IRR if initial capital goes up 30%? 3. How much would the selling price have to increase to compensate for 30% in capital costs to the original level in 1.? 4. What is your recomendation?
Use the information provided to answer the questions.Use the information provided below to calculate the following. Where applicable, use the presentvalue tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. 5.1.3 Calculate the Net Present Value of each project (with amounts rounded off to the nearest Rand). 5.1.4 Use your answers from question 5.1.3 to recommend the project that should be chosen. Motivateyour choice. INFORMATION Zeda Enterprises has the option to invest in machinery in projects A and B but finance is only available to invest inone of them. You are given the following projected data:Project A Project BInitial cost R300 000 R300 000Scrap value R40 000 0Depreciation per year R52 000 R60 000Net profitYear 1 R20 000Year 2 R30 000Year 3 R50 000Year 4 R60 000Year 5 R10 000Net cash flowsYear 1 R90 000Year 2 R90 000Year 3 R90 000Year 4 R90 000Year 5 R90 000 Additional informationThe discount rate used by the company is 12%.
Nile Inc. wants to choose the bettter of two mutually exclusive projects that expand warehouse capacity. The projects cash flows are shown in the following table attached. The cost of capital is 14% a. Calculate the IRR for each of the projects . Assess the acceptabiity of each project on the basis of the IRRs. b. Which project is preferred?
Calculate the cash flows for each year. Based on these cash flows and the average project cost of capital, what are the projects NPV, IRR, MIRR, PI, payback, and discounted payback? Do these indicators suggest that the project should be undertaken?
Calculate the project cash flows for each year. Based on these cash flows and the average project cost of capital, what are the projects NPV, IRR, MIRR, PI, payback, and discounted payback? Do these indicators suggest that the project should be undertaken?
Please use excel and show formulas/work. Can use a graph to visualize if that helps.
Calculate for each project: The payback period for each project The Net Present Value (NPV) The Profitability index Which project should be accepted and why? PLEASE SEE ATTACHED PHOTO TO ANSWER THE ABOVE QUESTIONS